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tv   Street Signs  CNBC  January 18, 2018 4:00am-5:00am EST

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welcome to "street signs." i'm joumanna bercetche these are your headlines european equities take note of the dow's record breaking rally opening higher in early trading. china's fourth quarter gdp beatsest pe esest beats expecta carrefour shares trade higher as fourth quarter sales offset the forecast cuts. and apple says it will contribute 3$350 billion to the
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u.s. economy over the next five years, and pay some $38 billion in repatriation taxes. good morning, everybody. it is thursday, we had another record breaking session in the u.s. with all three major indices making gains of more than 1% during the session let's look at the picture in europe and see how things are trading there. we're off to a good start as well not as strong as we were about an hour ago, but still trading positive on the day, up 1% or so, that's a far cry from the plus 1% gains we saw across all three major indices in the u.s the nikkei coming off its 26-year high, down 0.4% in the session. let's switch to european indices. ftse is lagging a bit, down
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0.2% this is while the macron and may meeting is taking place. we'll get there shortly. willem is there. cac cac is in the green, and xetra dax leading the charge it's a big day for germany there's the bundesbank imf meetings taking place. we heard from wideman and we'll get into that. switching to sectors, the leader this morning is technology, up 1% the microchip makers are making some good gains. travel and leisure up 0.6% oil and gas up 0.5%. to the down side, telecoms continue to lag, and wru untilities down 0.6% as the sector gets hit on expectations of higher interest rates in europe one of the main stories this morning is that china's fourth quarter gdp beat expectations
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after rising to 6.8% for the year earlier for 2017 the economy grew at its fastest pace in seven years thanks to a resilient property market strechbtenni strengthening exports al s also boosted the economy. eunice, what can you tell us about this strong gdp print this morning? >> first of all it did beat exfektatie expectati expectations most economists believed the number would come in at 6.7%, the figure came in at 6.8% that allowed the economy to clock a 6.9% growth figure for the full year. that's what the chinese premiere had said it was going to be last week what was behind this was a pick up in the export growth. a lot of that is because of the recovery we're seeing globally
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more specifically a demand for chinese products in the united states as well as in europe. then secondly a pick up in household consumption. so going forward, what's interesting is that there's near universal agreement among economists that the economy will slow down. a lot of that is because the beijing authorities have been trying to rein in some of the risks in the economy not only looking at the financial sector, tightening the credit growth, but also looking at the property sector, where we're seeing prices starting to soften a bit also the pollution problem china has had. that's been a negative for growth overall, those are the way that the figures have been analyzed another big risk for the economy has been in trade. more specifically a possible trade war between the u.s. and
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china. in fact, i'm standing in the factory of a company that relies on that trade. it's a car parts company they sell a lot of their part s to the united states but also to china. i was speaking to the chairman earlier today, he said he believed that some of the tougher rhetoric coming out of the white house is going to be a problem for this relationship. this is what he had to say >> translator: we are very concerned about how trump's policy will influence our future development in america from an entrepreneur's perspective we hoped for a more open policy that would benefit all enterprises. if there were a more open environment, american companies would be able to choose better suppliers and gain greater benefits >> china's had a very big trade surplus. i think some of these latest figures show that if china did have a super good year because of exports, it could feed into that criticism out of the white
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house. over to you. >> eunice, thank you very much for that and for bringing us the latest on the chinese numbers to join us, greg botham from schroeders is joining us on the set. today's numbers are not really confirming there's any slowdown in place if anything, china's growth for the numbers for the year were strong 6.9% the strongest in seven years or so do you think that this means there will be a slowdown to come in the future as the chinese government gets along with these deleveraging measures? >> when you look at the supports to growth, our expectation based on the forecast suggests that continues in 2018. not an acceleration but a continued growth the leveraging story is where the more negative outlook on chinese growth comes from, combined with the pollution crackdown. we had an ongoing deleveraging
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process, or what the chinese call a deleveraging process in 2017 credit outgrows nominal gdp, so debt gdp must go up, so it's not been a true deleveraging that feeds to the economy in a six to nine-month lonag going forward you would expect it to hit the property sector in the first half of 2018 >> you raise an interesting point here you said that debt to gdp still continues to climb we're not seeing it we're not seeing the economy slow down here can we take them seriously when they say they're actively looking to think about deleveraging, particularly when it comes to the so-called zombie institutions >> i think they are serious in that there are regulators who are worried about financial risks posed by excessive credit growth you have seen a deceleration, but not enough to bring the total leverage down.
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the problem is that taking growth down too much means you get a gdp growth hit that's what they're keen to avoid. i think we can say they will try to see how the west goes, but when it comes to the growth and financial stability, it's a more 50/50 call >> another thing i noticed is the retail sales numbers came in weaker than expected investment came in stronger. i thought the whole purpose over the last couple of years shift was to move attention towards consumption side of the economy away from investment do these numbers imply that we've reached peak rotation? >> i don't think we've seen rebalancing at all of the chinese economy. they tried it post 2013 when they said they were going for reforms. when they said it hurt growth and then backed off. so they've gone back to the old growth model they're not working against the consumer side, but they're not doing anything to facilitate or
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see a rotation of the sources of growth the retail sales numbers should not be overinterpreted it could just be a payback for single days in november. maybe people brought forward sales, consumption to the sales day. a lot of weakness in december was on the back of auto sales, and distortions around tax effects from last year what do you think the biggest risk is to china going forward >> geopolitics is a key one. if trump limits himself to things like steel, it's not that big of a story those steel gets the headlines, it's about 2% of -- >> it's been about technology as well we heard u.s. lawmakers going to block a proposed takeover of -- proposed takeover of moneygram so they got involved and stopped
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that, and trying to block at&t's cooperation with huwei does that make you concerned >> you could take the view that chinese growth has come about through buying american innovation that's one reason out there. maybe that means you become more negative on the medium to long-term outlook if they can't acquire innovation from elsewhere. as long as exports are not blocked of chinese tech goods, which i don't think is suggested, it doesn't have an immediate impact on growth >> i want to ask about the currency the pboc removed the counter cyclical buffer. some people interpret that as first steps towards liberalizing the dollar/yuan what is your view on the trajectory >> i think it's the pobc were concerned that the country was too strong measures were brought in to
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protect the market from getting built up they're probably seeing dollar is weakening t they don't want it to get too strong they can pretend its liberalization, it makes them look good, but it's basically the dollar is weak, let's step back our call for this year is largely predicated on the dollar view we expect a weaker dollar over the next couple of years, but i think they will deliver on strength >> perhaps keeping interest rate policy as it is? >> i think we'll see a shift in the way they do their interest rate policy. the benchmark lending and deposit rates don't really matter anymore, it's more about open market operations they have to choose a new instrument >> craig, thank you very much for that and for bringing us the latest on china and the die section of the gdp numbers
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now, get involved in the conversation e-mail the show. the address is streetsignseurope@cnbc.com of course you can tweet us we're @streetsignseurope@cnbc. coming up, will there be a frndipiesh we'll talk to lord peter rickets. or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember.
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welcome back carrefour opened higher as stronger sales offset profit warnings food deflation in brazil, the company's second largest market contributed to the profit warning. the company will reveal a turnaround strategy later this month. associated british foods is trading lower after reporting a 12% annual drop at itssugar unit the firm is maintaining its full-year earnings guidance despite reporting a pick up in
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revenues for the three months at the start of january the primark brands had a particularly strong performance with sales rising 7% during the quarter. comparable sales at whitbread rose 0.3% in the quarter. the owner saw the hotel business grow well. while comparable sales declined by 0.1%, whitbread has come under pressure from activist investors to spin off costa. the french president, emanuel macron, will meet uk prime minister theresa may in his first official visit to britain since taking office. the two leaders are expected to talk brexit, defense and border security willem joins us from the military academy where the meeting is being held. i know that you're probably very much looking forward to the military parade that will happen
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at 2:00 p.m. later today apart from that, what else is on the agenda >> you mentioned border security that's already come up this week after mr. macron went to calis, that's a region that seen a huge impact from the migration process across europe and angered french people because many of those migrants have been seeking entry to the uk. under a 2003 bilateral treaty, there is an agreement for the british to have a physical border there in french territory. that's something that has been revised under a new bilateral treaty that will see the british reportedly pay more than 40 million pounds towards increased security costs the british will be forced to speed up application processes for those seeking asylum and unaccompanied minors in places like calis or those seeking to join family already in the uk. that's something that emanuel macron faced criticism for in france so he has a deal he'll be
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slightly happy with. this afternoon we heard the british government is willing to help out with the french efforts in west africa they'll send three chinook helicopters, though no men the french are sending troops to estonia for a uk-led mission there. that's about deterring russian influence in the baltics we have heard there will be an allocation of 50 million pounds by the british department for international development to west africa, to that region of africa, which is a drop in the ocean for the 10.5 billion pounds a year they spend on development but is a gesture which may help the french cooperate further with the british when it comes to security mr. macron bringing more than a half dozen ministers, his most senior ministers to the meetings remember, these are two countries with 71 billion pounds, more than 80 billion
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euros a year in trade. it's an important relationship to the uk. it may be even more significant after brexit, because it seems like the security cooperation with france will be a way for the uk to retain significant influence on the continent after brexit takes place >> you say it's an important relationship of course it is, but do you think these talk also have any bearings on how the brexit negotiations actually evolve from here? >> we understand from both governments there will be an update on brexit between these two leaders. of course emanuel macron during his campaign described it as a terrible, terrible mistake he's been hard lined before becoming president on britain's prospects on a trade deal that slig softened slightly, but both say there will be an update on the negotiations we heard they would look with kindness if the uk reversed calls on brexit.
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we also heard from junk their this was a catastrophe, a lose-lose for europe and britain, and if britain wanted to try to return to the fold of the european union that is something he would try to facilitate as best he could. >> thank you for bringing us the latest lord peter ricketts is joining us on the set this morning you have worn many hats, not just former prime minister to france, but also uk national security adviser let's talk about this summit the purpose of this summit was to strengthen french/uk cooperation when it comes to matters like defense and security now both sides have different angles macron is a big proponent of further closer european integration, this idea of creating a paneuropean defense unit mrs. may is dealing with brexit. do you think the easier common ground is a joint agreement when
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it comes to security before the bigger topic of defense? >> yes i think security and defense will be important. this summit is about strengthening the bilateral relations between britain and france before all the turbulence of brexit hits us. they are two countries with similar interests in the world two biggest defense budgets in europe, a long tradition of going out and dealing with problems in the world. it's good to hear britain is contributing to the french mission. but this issue of calis has been a difficult one. it gets in the way of the enormous trade that goes on. the migrant problem in calis has been really difficult. we've been working with the french closely it's right that britain takes some of those migrants that have a particular reason to come to the uk >> could you have ever imagined
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when the treaty was signed back in 2003 that the issue of costs would then become such a sticking point between the two countries? >> the treaty was made in a term of problems with migrants as well there was a jungle in calis at that time. part of the arrangement was to get traffic flowing better across from the ports and the euro tunnel terminal so there's been problems with migrants in the last ten years in calis that's why everyone in calis is fed up with it and want help i think the atmosphere at the summit will be better today because theresa may will do more to offer to help >> with the uk leaving the eu what does it mean for the future of a pan-european defense force and where is the uk's role when it comes to that >> i think strengthening the uk/french defense bilateral links, they have the forces trained to work together and
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deal with problems in the world together brit haain has contributed to european missions. my own hope is when we leave the eu we will have an arrangement where britain will carry on being able to participate in european military actions because it's in our joint interest president macron has ambitious ideas, but britain needs to be a part of it as well we are the two military powers in europe that are capable of going out in the world and making a difference. >> do you think we'll see more of these bilateral discussions with various other countries in the eu as the brexit negotiates ta negotiations take place? >> i think we will our bilateral relations with these countries becomes more important. we have to work harder in the capitals in the bilateral relationships. this summit is a start in building a more robust
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individual link with each of our main european partners which will go beyond brexit. >> i will ask you the same question that i asked our correspondent earlier. do you think today's summit will have a bearing on how the brexit negotiations go on >> no, i don't think they'll get into a discussion of detailed brexit issues. all the 237 memb7 members of thr doing that through michel barnier, the brexit negotiator if it's a good rapport between the two leaders, that can only help it will encourage the french to look for ways of being constructive in the brexit negotiations, and avoiding the kind of train wreck that is -- that would be damaging to both countries. >> just on the final point, mr. macron clearly persuaded mrs. may to send armed forces to africa i wonder what is in it for the uk if it's a quid pro quo, what are the uk getting out of that
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>> it's more than us doing something for the french we have common interests in africa there are islamist tourists there, that can be a threat to the uk and france. we had terrorist attacks if britain is going to be a useful, relevant partner to france, it's good we're helping them in an area of high priority to them. equally the french will be sending more troops, part of the nato operation in eastern europe, estonia, which britain is leading there's a bit of quid pro quo going on here, but both countries are looking to support the other. >> terms of your vast experience, how would you describe the relationship between the uk and france at this point in time >> of course it's much more in the relationship than just bilateral government policies. the bio tapestry is a clever gesture and reminds us of the rich union between the two
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countries. >> lord ricketts, thank you for joining us on the show this morning. it was a pleasure having you on "street signs. president macron may be the man to watch at the world economic forum head to cnbc.com to find out which issues he's expected to address during his speech in davos. cnbc will be on the ground at the world economic forum for five days of live coverage starting on monday follow us on social media, search cnbc international across all major platforms. british prime minister theresa may says her government has protected taxpayers from an unacceptable bail outof carillion. jeremy corbin accused the company of negligence. and shares of gkn rejected a
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takeover bid from melrose and that they should see greater benefits to gkn's shareholders last friday gkn rejected a 7 billion pound bid from melrose saying the offer was opportunistic. coming up on the show, as germany's political future comes close to resolution, its economic future is under discussion at the bundesbank we'll talk about the debate in a few moments.
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welcome to "street signs." i'm joumanna bercetche these are your headlines european equities take note of the dow's record breaking rally opening higher in early trading. china's fourth quarter gdp beats expectations with a 6.8% jump year on year, but retail sales disappoint in december carrefour shares trade higher as stronger than expected fourth quarter sales offset the french grocer's profit forecast
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cuts. and apple launches a massive move of overseas cash saying it will contribute 3$350 billion t th u.s. economy over the next five years, and pay some $38 billion in repatriation taxes. the 300-point drop in the dow from a couple days ago was all a bad dream it appears the trading session yesterday, all three major indices were up more than 1% the dow broke through the 26,000 mark and closed above it for the first time ever. another strong session in u.s. equities in yesterday's trading. the picture this morning looks dimmer the dow is set to open about 20 points lower a far cry from the big volatility and big jumps we have seen the past couple of days that is the picture for the u.s.
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this morning switching to europe, the only laggard is the ftse 100 down 3%. all other european indices are trading in the green xetra dax is leading the way up almost 0.4% on the day. we'll get into some of the headlines that have been coming out of that imf bundesbank conference in a short while. switching to foreign exchange, i keep talking about the weakness of the u.s. dollar it is still at the lowest level since december 2014. you can see that in the crosses this morning euro/dollar continues to inch higher that dollar/yen currency pair around the 111 mark. cable at 1.3830. short of the 1.40 level. anyone who trades the uk markets will be watching cable closely
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switching to germany the leader of the social democrats says it is hard to predict the outcome of his party's upcoming vote to enter coalition talks with merkel's conservatives. the spd will decide on sunday whether or not to start formal negotiations with merkel on forming a coalition government martin schulz was upbeat ahead of the botalks. the president of the bundesbank praised germany's strength but says prudence is necessary. weidmann was speaking and says germany and all eurozone members must work to make economies across the region much more resilient to future economic shocks and they can't afford to be complacent. >> i could like to conclude by recalling something else that president kennedy said
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there are risks and costs to action by they are far less than the long-range risks of comfortable inaction to me that aptly describes the situation germany and the euro area find themselves in. now, the director from brugel is joining us on the line thank you for joining us on the show it seems it's all about the german current account surplus yesterday we had numbers showing that germany's current account surplus is the biggest in the world followed in second place by japan what has driven this move wider? is it demographics the weaker euro currency other matters driving it what is your view? >> my first point is that the current account is highly unusual. we have never seen three years with current account surpluses of almost 8% in a row.
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so this is remarkable. if you look at what has been driving it, it's really a corporate sector story it's not the household sector as often people think, all of a sudden the germans have become more thrifty no, it's about companies investing less in germany, and saving more in germany and providing those funds to the rest of the economy. this is macro economically significant numbers. we see a shift in the last 10, 15 years of around 5 percentage points of gdp in the behavior of companies in germany we have a weakness in investment, and that will weigh on future growth it weighs on wages and so on >> but it's not just the current account surplus. germany has a budget surplus as well weidmann earlier said there is no need for action on the fiscal
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policy side. do you think germany could benefit if the government starts spending more? >> german government has 45 billion euros to spend that's the budgetary surplus my understanding is that the coalition pre-agreement essentially foresees to spend that money and that would bring down the current account a bit. but we are talking about here more like 1% of gdp. so that's the kind of shift that we will see. it will still mean the current account is only -- below 7, but still way above 6% yes, there would be a shift. i think the more important fiscal measures are in terms of giving incentives for corporations to invest so let's reduce -- increase
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allowances for investments so they can be more easily deducted from the taxes so tax allowances like the u.s. government has been doing with its tax reform can have a major effect on investment in germany. >> the german economic numbers for the past year have been strong there's also some concerns that perhaps this too accommodative policy out of the ecb poses the risk of overheating the economy. wage growth, still only 2.5% in germany. so do you think more can be done in terms of raising wages as well >> so i don't think you can say the economy's overheating. we are at high employment, but wages are still in a range that's perfectly acceptable and german inflation rates are not even above 2%. i think there is room for increasing wages more.
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that will be true for the rest of the eurozone. this is not a variability you can switch a button in berlin and then wages grow. it's much more a question of sort of what other structural underpinnings of wage growth can we not increase investment, increase the capital stock which has been week in germany and that will help the wages to go up so i think there's a lot of policies that you can employ to bring up wages you certainly should not think it's overheating more can be done to bring up wage growth. >> switching gears a bit mr. macron is in the uk meeting with mrs. may and meeting with mrs. merkel tomorrow do you think one of the outcomes of this grand coalition, if it does take place, will be closer european integration >> well, i moan, both emanuel macron and this grand coalition,
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if it comes about, will have full european agendas. if you look at the paper they produced in berlin last week, it's full of nicely sounded declarations, but what it means in the end in practical terms, in terms of actual cash that germany would like to put on the table for the eurozone, i think we should be prepared for disappointments from the point of view from the rest of the eurozone yes there will be extra money, but we're talking more about 0.1, 0.2, perhaps 0.3% of german gdp so this is not the fiscal union that federalists in brussels have been dreaming of it's a positive development for the jerusalem in the sense
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there's some commitment, some further commitment for european integration. i doubt it will be a total game changer. what do you think the biggest risk is to the german economy this year? >> i think it's twofold. one is the persistent low ambition in terms of moving up the value chain, changing investment patterns, opening up for new businesses digital economy. that's the long-term risk. the second or immediate risk is as monetary policy gradually reverses its very expansionary course, we will see a correction of asset prices across germany, across the eurozone, perhaps around the globe if that is not managed well from the money trtary authorities, we
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could see significant changes in financial assets with financial volatility, short-term volatility, perhaps some more serious financial instability. >> absolutely. that's something the market will be watching out for. thank you very much for joining us republican leadership aides in the u.s. say they're confident they have the votes to pass a short-term government funding bill before friday's deadline it remains unclear whether democrats will support the bill without an agreement on immigrants who came to america illegally as children. casey hunt filed this report on the ro tesprotests and political maneuvering in washington. on capitol hill today, dozens of arrests. yasmin gonzalez is terrified >> i have four u.s. citizen children that afraid to take to mexico country that i don't even remember. >> reporter: she's here trying to convince democrats to take a stand and refuse to back the
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republican spending plan to keep the government open unless there's a deal to help the 800,000 d.r.e.a.m.ers who are protected by the daca program. do you have enough republican votes to keep the government open this week >> we've been very clear, we want to see a daca solution, but a daca solution has got to be a balanced solution. it makes no sense for democrats to try and bring us to a shutdown >> reporter: the president's aides trying to convince conservatives in the house not to sink the plan >> no one in our caucus wants a shutdown >> reporter: president trump himself -- is there any daca rule you're willing to sign? >> we're working on it we're working on it. >> reporter: adding to the confusion. >> i'm looking for something that president trump supports. and he's not yet indicated what measure he's willing to sign. >> reporter: both sides playing the blame game republicans control congress and the white house but they need democratic votes in the senate to keep government running like senator joe manchin whose state voted overwhelmingly for president trump. >> i'm here because of west virginia i'm going to represent west
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virginia. >> if that means you vote to keep the government open, so be it >> i'm voting for west virginia. >> reporter: outside the beltway, time is running out for hundreds of thousands of d.r.e.a.m.ers. like hermin martinez garcia, a police officer outside fairmont city, illinois >> there can't be any negative thoughts in my mind because then i'm not -- it doesn't allow me to do my job >> reporter: still working for his community. waiting and hoping he'll be allowed to stay. as we get into that friday government shutdown deadline, president trump has said terminating nafta could be the best way to make a deal on america's trading relationship with canada and mexico the president's comments in an interview with reuters come less than a week before the latest round of nafta talks are due to begin in montreal. washington says the u.s. won't accept anything other sththan a radical overhaul of the trade deal. the u.s. is considering a
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fine against china over alleged theft of intellectual property the president said that a very big potential fine could come out soon authorities in the u.s. launched an investigation with recommendations set to be released shortly the trump administration has threatened actions against beijing previously over trade with this, the clearest sign yet that moves will be made. and north and south korea will march together at next month's winter olympics and even compete with a combined team north korea will send a delegation of more than 400 in total including cheerleaders, artists and tae kwon do competitors. now, bill neely is in south korea and has more on the story. >> and olympic first tonight for north and south korea, they'll not just march together under a joint flag, as they last did 12 years ago, they'll play
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together a united women's hockey team the south's coach will pick the players, with 230 north koreans cheering them on southern skiers will even train on the north slopes. south korea's president said today a joint team will help reconcile old enemies. while many here in south korea welcome a united team, elsewhere, there's skepticism about what japan calls north korea's charm offensive. its nuclear threat not forgotten at this summit to tighten sanctions. >> we will not accept a nuclear-armed north korea. >> reporter: a united front here that north korea can play olympic games but not nuclear games with the world bill neely, nbc news, seoul. i've just got some headlines that saudi aramco's ceo says we will be ready for the ipo in the second half of 2018, still awaying government decision on
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the venue. they say oil prices are improving and that has been supported by a drop in global oil inventories and commitment to supply cuts, which they helped spearhead yes, very interesting comments coming out of aramco there. coming up, apple promises a 3$350 billion impact to the u.s economy over the next five years. we'll break down the connection to the tax overhaul and look at what it could mean for the stock after the break.
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welcome back to the show goldman sachs and bank of america investors are digesting fourth quarter earnings. goldman saw a sharp dip in trading revenue, b of a dropped 13% to 1.$1.71 billion. morgan stanley reports numbers later on today some big drops we have seen in trading there with goldman dropping 50% year-on-year. south korea is considering
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shutting down all domestic cryptocurrency exchanges or just those that it accuses of violating the law. bitcoin dropped below $10,000 following regulatory fears but has since recovered. the future of cryptocurrency is a divisive topic dan nathan and rich ross locked horns yesterday. >> you think crypto is a pile of something. something not good >> our dreams. >> are the crypto proxy stocks like an overstock is what i'm really thinking of, because that's really the closest thing, is it also in this pile. >> it's interesting. the stocks that have been painted with sort of the tint of crypto, square, nvidia is another one. not to say nvidia is not a pure play obviously a lot going on with a.i. stock they held up well all things considered i think there are two different discussions. at least those companies have fundamentals whereas this stuff over here not so much in terms of the fundamentals. let's separate the stock discussion
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of course people will trade them sort of in tandem but stocks are doing just fine even amidst the carnage. >> sounds to me you hate it when clients ask you about cryptocurrency >> i think as i travel -- >> like why are we talking about this when there are stocks t invest in they are moving. >> i'm an institutional analyst, not to say they are better than retail, but i focus on institutions those are people that sort of pay my way in this world and all of that being said, i can't find a single one that has bought a single cryptocurrency for the fun. >> they are asking you because they want to. >> they are asking me because they own it in their personal accounts they are traders looking for a personal shortcut, they are gambling if the government wants to crack down on crypto, they can legalize football betting. >> some of the smartest people in finance, in technology, in investing, they are fascinated by this stuff. they are fascinated by crypto.
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they are fascinated by blockchain you talk about fundamentals of these things they don't have any cash flows same thing about web 1.0, and pretty big winners right now bitcoin happens to be the best use case for block chain technology and some of the smartest people in the world are convinced this is going to be the next big thing the way the internet was i think it is a little glib to come on and say things like that if you want doubles by boeing. boeing has had $93 billion in sales in the last five years and now they have become more profitable. >> you like it when we fight let's fight. i was there for web 1.0. i watched amazon go from 1 to 1,000 and back to 1 before it went to 1,000 again. smart people can go broke, too we have seen that many times. >> but the charts are going save them. >> what's going to save them your analysis, you have -- where are you, you are not helping people make money. let's call it what it is >> that's not true. >> you haven't liked trump, the markets soared you're wrong don't say i'm glib it's right or wrong.
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>> it's not about glib or serious. >> i think dan -- listen, dan is outspoken in many things. >> dan has had some good trades. >> absolutely. >> we are good we got the chartist here he has his shtick. and it's fantastic, pal. >> well, it is what it is. >> don't come on here and tell me i've been -- you don't know what i've done you don't know what my call is okay so go [ bleep ] off, seriously >> okay. tell me, what's the call now. >> dude. seriously. >> okay. a tough moment here on "fast money. >> we are going to leave it there. >> that was quite the heated discussion about bitcoin clearly appears to be a divisive topic. let's move on to another story apple says it will pay some $38 billion on taxes on cash held overseas at the lower repatriation rate set by the trump administration's tax overhaul the company says it will make a contribution of 3$350 billion t the u.s. economy over five years. this includes plans to invest 0 $30 billion and create 20,000
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new jobs investors reacted positively to the news sending apple shares around 1.6% higher arjun joins me on the set for more of this that's a lot of money being brought back to the u.s. where is it going to go? in the past apple has come under a lot of scrutiny from manufacturing iphones abroad can we expect them to start manufacturing iphones in the u.s. again >> you're right, there's a lot of political pressure on apple to bring mrafrerri ermanufacture u.s. the most obvious place to spend cash is in special dividends, buybacks, those are the clearest places apple also said it will spend about $10 billion on that on new data centers so relying less on amazon and microsoft for their cloud services and build their own infrastructure, which could help it have more control and boost some services. the likes of apple music for example that rely on these cloud
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services there's some of the obvious areas. also they said they would build a new campus they have the big spaceshipone there is one in austin, texas and now another one in another part of the u.s. so investors say what does in mean in terms of apple looking for the next leg of growth, what happens in five years as the smartphone market continues to mature does apple try to wean itself off the iphone that's when people say what does apple do with the money? does it invest in the automotive sector does it look at netflix or tesla? >> more broadly speaking, almost every analyst has a buy rating for apple going forward. people are envisioning that growth yesterday the stock still ended the day up 1.5%. it seems as though the reception has been positive. >> the positive news is that apple is bringing the cash back, now it's a question of what is apple going to do with it.
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if they sit on this, that's good for share holders and good for the growth of the company, and that could weigh on the stock if apple says we are making bold moves and investing in the future that could be key >> i wonder which other u.s. tech companies with -- non-financial companies with large stockpiles of cash will think about repatriating as well thank you very much for joining us on street street. a quick look at u.s. futures. we said it was another record day yesterday. looks as though it will be a bit softer this morning, but nothing major. dow jones seen to open about 8 points weaker. that's it for today's show i'm joumanna bercetche hope you enjoyed the show. "worldwide exchange" is up next. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered...
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the 1.$1.25 trillion rally that's how much the market has added in market cap alone. countdown to shutdown. congress has 43 hours to pass a spending bill before the lights go out in washington and apple is betting big on america. what the tech giant just announced that could be a big boost to the u.s. economy. it's thursday january 18, 2018 "worldwide exchange" begins right now. ♪

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